Stanley Electric Co (6923) AI Stock Analysis

• Market Cap: ¥402.32B
• Dividend Yield: 2.89%
• Average Volume (3M): 654.85K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.66
• Revenue Growth: 4.86%
• EPS Growth: 10.95%
• Country: JP
• Employees: 16,778
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 34.79
• Shares Outstanding: 152,000,000
• 10 Day Avg. Volume: 712,470
• 30 Day Avg. Volume: 654,850
• PEG Ratio: 0.51
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 20.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,455.85
• Price Target Upside: 12.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥3,486.00 ▲(13.29% Upside)

Stanley Electric Co's strong financial performance is the most significant factor, supported by solid technical indicators and a fair valuation. The company's robust financial health and positive market momentum contribute to a favorable stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Stanley Electric's products, enhancing its competitive position and market share.

Profitability Margins

Improved profitability margins reflect effective cost management and pricing power, contributing to sustainable financial performance.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.

Negative Factors

Free Cash Flow Decline

A significant decline in free cash flow may indicate potential liquidity challenges, affecting the company's ability to fund operations and growth initiatives.

Liquidity Management

Challenges in liquidity management could constrain operational flexibility and limit the company's ability to respond to market opportunities or disruptions.

Operational Cash Flow

While operational cash flow is robust, the decline in free cash flow suggests that capital expenditures or other cash uses may be straining liquidity.

Stanley Electric Co Business Overview & Revenue Model

Company Description

Stanley Electric Co., Ltd., together with its subsidiaries, manufacture, sells, and import/export of automotive and other light bulbs. It operates through Automotive Equipment, Electronic Components, and Applied Electronic Products segments. The Automotive Equipment Business segment offers LED, HID, and halogen headlamps; rear combination, turn signal, and fog lamps; and automotive LED and light bulbs, etc. The Electronic Components Business segment provides ultraviolet (UV), visible light, and infrared LEDs; optical sensors, liquid crystal display (LCD) devices, and UV cold cathode lamps; and sub miniature lamps, etc. The Applied Electronic Products Business segment offers LED lighting for landscape, road, etc.; operating panels; backlighting units for LCDs; flash units for cameras; and sensors for automobiles, etc. The company also offers measuring instruments, medical equipment, and other equipment, as well as develops and sells software. It operates in Japan, the Americas, the Asia-Pacific, China, and internationally. Stanley Electric Co., Ltd. was founded in 1920 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Stanley Electric generates revenue through the sale of automotive lighting products and electronic components. The company primarily earns money by supplying original equipment manufacturers (OEMs) and aftermarket customers with high-quality lighting solutions and electronic devices. Key revenue streams include contracts with major automotive manufacturers for the development and production of custom lighting systems, as well as sales of standard products through distributors and retailers. Strategic partnerships with automotive companies and collaborations in research and development further enhance their market position and contribute to earnings, allowing them to innovate and meet evolving industry standards.

Stanley Electric Co Financial Statement Overview

Summary

Stanley Electric Co exhibits strong financial health with consistent revenue growth and improved profitability margins. The company maintains a solid balance sheet with low leverage and high equity ratios, despite a decline in free cash flow.

Income Statement

Stanley Electric Co shows strong financial performance with consistent revenue growth, evidenced by a revenue increase from 472.4 billion to 509.6 billion yen, marking a growth rate of 7.9%. The gross profit margin improved to 20.7%, and the net profit margin rose to 6.3%, indicating enhanced profitability. Furthermore, the EBIT and EBITDA margins increased to 9.6% and 19.1%, respectively, showcasing strong operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.09, reflecting conservative leverage. An increase in total assets to 749.6 billion yen and a high equity ratio of 64.8% underscore financial stability. Additionally, the return on equity stands at 6.6%, indicating effective management of shareholder investments.

Cash Flow

Stanley Electric Co's cash flow statement demonstrates robust operational cash flow, with a strong operating cash flow to net income ratio of 2.08. However, free cash flow decreased from 38.5 billion to 22.8 billion yen, a decline of 40.7%, suggesting potential challenges in liquidity management. Despite this, the company maintains a healthy free cash flow to net income ratio of 0.71, ensuring adequate cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	507.96B	509.56B	472.40B	437.79B	382.56B	359.71B
Gross Profit	105.88B	105.67B	82.89B	81.27B	70.88B	74.97B
EBITDA	90.21B	97.13B	72.88B	86.68B	72.18B	71.19B
Net Income	31.39B	32.06B	26.50B	26.50B	21.45B	22.92B
Balance Sheet
Total Assets	741.63B	749.61B	708.26B	629.61B	585.38B	541.02B
Cash, Cash Equivalents and Short-Term Investments	214.54B	219.61B	198.64B	173.41B	150.75B	138.58B
Total Debt	44.45B	44.58B	14.28B	14.17B	12.58B	12.72B
Total Liabilities	154.66B	150.70B	118.90B	93.48B	96.42B	96.37B
Stockholders Equity	479.31B	485.89B	524.80B	476.64B	434.94B	399.63B
Cash Flow
Free Cash Flow	0.00	20.95B	38.45B	40.01B	7.98B	15.45B
Operating Cash Flow	0.00	66.58B	65.55B	76.28B	36.88B	46.64B
Investing Cash Flow	0.00	-64.87B	-31.56B	-56.43B	-20.26B	-41.65B
Financing Cash Flow	0.00	-19.97B	-25.95B	-3.82B	-13.48B	-13.02B

Stanley Electric Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3077.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6923, the sentiment is Negative. The current price of 3077 is above the 20-day moving average (MA) of 3057.15, above the 50-day MA of 3058.18, and above the 200-day MA of 2832.06, indicating a neutral trend. The MACD of 8.21 indicates Positive momentum. The RSI at 46.67 is Neutral, neither overbought nor oversold. The STOCH value of 29.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6923.

Stanley Electric Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7287	79 Outperform	¥125.27B	13.68	―	3.00%	1.77%	117.03%
6923	78 Outperform	¥402.32B	14.93	6.37%	2.89%	4.86%	10.95%
7283	77 Outperform	¥145.65B	10.68	―	3.22%	0.29%	9.87%
7276	76 Outperform	¥659.07B	14.22	7.20%	2.40%	-0.73%	88.36%
7244	74 Outperform	€48.80B	8.40	8.46%	2.74%	-6.35%	18.49%
7266	64 Neutral	¥19.23B	15.38	―	2.75%	-8.63%	-55.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Stanley Electric Co Corporate Events

Stanley Electric Announces Treasury Stock Purchase

Stanley Electric Co., Ltd. announced the purchase of 1,944,600 shares of its common stock for a total of 5,937,476,400 yen during November 2025. This move is part of a broader strategy authorized by the Board of Directors to repurchase up to 35,000,000 shares, aiming to enhance shareholder value and optimize capital structure.

Stanley Electric Executes Treasury Stock Purchase

Stanley Electric Co., Ltd. announced the purchase of 2,385,600 shares of its common stock for approximately 7.26 billion yen during October 2025. This move is part of a larger plan approved by the Board of Directors to repurchase up to 35 million shares, aiming to enhance shareholder value and optimize capital structure.

Stanley Electric Revises Financial Forecast and Dividend Plans

Stanley Electric Co., Ltd. has revised its consolidated financial results forecast for the fiscal year ending March 31, 2026, due to favorable foreign exchange effects and the easing of U.S. tariff rates. The company anticipates an increase in net sales and operating profit compared to previous forecasts. Additionally, the company has announced an upward revision of its interim and year-end dividend forecasts, reflecting a commitment to providing appropriate returns to shareholders.

Stanley Electric Co. Reports Strong Sales Growth and Dividend Increase Amid Challenges

Stanley Electric Co., Ltd. reported a 1.8% increase in net sales for the first half of FY2026/3 compared to the previous year, with sales and profits surpassing forecasts. Despite a decline in operating income due to US tariffs and foreign exchange fluctuations, the company revised its full-year business forecasts and increased its annual dividend, reflecting improved income margins in China and strong performance in the Asia-Pacific region.

Stanley Electric Completes Significant Treasury Stock Purchase

Stanley Electric Co., Ltd. announced the completion of a treasury stock purchase, acquiring 18,429,000 shares for approximately 55.8 billion yen. This move is part of a broader plan approved by the Board of Directors to repurchase up to 35 million shares, aiming to enhance shareholder value and optimize capital structure.

Stanley Electric and Mitsubishi Electric Mobility Amend Joint Venture Timeline

Stanley Electric Co., Ltd. and Mitsubishi Electric Mobility Corporation have announced an amendment to the effective dates of their joint venture agreement for a lamp system business targeting next-generation vehicles. This change, moving the dates to January 2026, aims to ensure a solid foundation for business operations and a smooth launch of the integration, with the impact on company performance to be disclosed once determined.